APEC 2018: What’s next for PNG?

With the ships to leave the harbour and the streets of Port Moresby returning to a sense of normalcy, APEC 2018 has well and truly come to an end.

As the dust settles, it seems everyone is asking the same question:

?What now??

To filter through the noise of this weekend’s hectic media reports, the Peopleconnexion PNG team have put together a summary of the key announcements and actions resulting from the weekends? meetings:

1.   Papua LNG given the green light

On Friday, a Memorandum of Understanding was signed by the Government and project development partners Total, ExxonMobil and Oil Search.

According to Reuters, analysts estimate the project will cost USD $13 billion (USD $6 billion less than the Exxon-operated PNG LNG project).

Negotiations regarding the project are expected to continue into next year, when it is expected a final agreement will be signed, making the way for future FEED activities. In the meantime, we have set up a newsletter for Oil & Gas project updates you?re welcome to join: https://www.peopleconnexion.com/png/oil-and-gas-jobs

2.   Papua New Guinea Electrification Partnership announced

Image source: PNG Power

Earlier this year at the Australia Papua New Guinea Business Forum, PNG Power’s COO Alastair Andrews spoke about PNG Power’s vision to meet the Government’s objective of providing electricity to 70% of PNG by 2030.

On the weekend, an alliance between Australia, New Zealand, Japan and the US committed to making that vision reality. The Papua New Guinea Electrification Partnership was announced on Sunday by Prime Minister O?Neill alongside the partnership nation’s leaders.

Image source: Associated Press

Australia is set to make an initial contribution of $25 million, however the full cost of the project has not yet been released.

3.   Lombrum naval base to be redeveloped

The US Vice President Mike Pence announced that the US and Australia will partner to redevelop Lombrum naval base on Manus. The expansion of the deep-water base will be expanded and is set to host Australian and US naval ships.

Details regarding project values and the number of ships to be stationed at the base have not yet been released.

4.   MoU signed with China and Ramu Nickel to be expanded

In a meeting at the Stanley, China announced a grant aid of K150 million in education in addition to a number of agreements on major areas including:

•          Loan arrangements
•          Economic cooperation ? creating a joint economic and trade committee
•          Higher education initiatives
•          Cooperation between ministries of tourism and culture
•          Visa exemptions for PNG politicians and diplomats travelling to China (and vice versa)
•          Investment cooperation
•          Dry land rice technical project
•          Investment in infrastructure

An MoU was also signed between PNG and China Metallurgical Group Corporation regarding expansion of the $1.5 billion Ramu Nickel project.

Our team will be keeping an eye out for future announcements and outcomes for industry over the next few days. Please feel free to comment below regarding additional updates that we can add to our list.